Dunfermline Building Society

Dunfermline Building Society

Note - the message below only applies to you if you are a mortgagor, a commercial borrower, or a creditor who is not transferred to Nationwide Building Society.

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  • On 30 March 2009 an order was made placing Dunfermline Building Society into building society special administration by the Court of Session (PDF 222 KB). This was followed by and was made effective by the making of a Property Transfer Instrument ('PTI') by the Bank of England that transferred Dunfermline Building Society's customer deposit accounts, the majority of its mortgage assets and certain other assets to Nationwide Building Society. The social housing business and small number of related deposits were transferred to DBS Bridge Bank Limited which had been set up by the Bank of England (these loans and related deposits have subsequently been sold by the DBS Bridge Bank to Nationwide Building Society). 
  • Dunfermline Building Society's remaining operations are being wound down in building society special administration over some time; this includes its commercial loans and certain mortgages. 
  • We have set out the information below and will be updating this site to explain what this means to you. You will be receiving additional communications from us by letter and you may wish to contact Alexander Walker on 0141 300 5845 or Susan Mcleish on 0141 300 5534. 


  • Most mortgages, being those originally taken out with Dunfermline Building Society have been transferred to Nationwide Building Society. 
  • Other mortgages and commercial loans remain with Dunfermline Building Society (in building society special administration). The terms and conditions of these mortgage and loans are unaffected by the building society special administration. You will continue to owe the same amounts to Dunfermline Building Society under your mortgage or loan as you did before and should continue to make your contractual payments in the normal way.
  • As before, failure to keep up with your mortgage may put your home at risk and failure to keep up with your loan may put your assets at risk. Staff will be available to talk to you if you are experiencing any difficulties making payments. 
  • Dunfermline Building Society (in building society special administration) will not be able to offer you new mortgages, remortgages, loans or advances.  Customers who acquired their mortgages directly from Dunfermline will have been transferred to Nationwide and are unaffected.
  • If you are currently in the process of applying for additional borrowing in respect of your commercial loan with Dunfermline Building Society, or have already obtained an offer or are awaiting receipt of funds under an existing agreement, then please contact your relationship manager on 01383 627 727.  


  • The Dunfermline resolution has left the Society with some £1 billion of assets (at book value) to realise. This, together with the anticipated receipts of the net proceeds of the sale of the social housing book by the DBS Bridge Bank to Nationwide Building Society, means that the special administrators' assessment is that there is a strong likelihood that the net realisations will be sufficient to repay all known and anticipated unsecured (unsubordinated) creditors in full. This assessment allows for an anticipated subrogated unsecured claim by HM Treasury following the PTI. In addition, all creditors have the benefit of a Third Party Compensation Order, pursuant to the Banking Act 2009, and made on 7 July 2009 that will insure "no creditor [is] worse off" as a result of the resolution.
  • The building society special administrators have paid an initial distribution to all known unsubordinated, unsecured creditors of 100p in the £. In addition, statutory interest on these claims was paid in September 2011. 


  • If you are a holder of the 6% subordinated debt notes our understanding is that you do not enjoy priority over other creditors or the members. Accordingly, you would only be eligible to receive payment against your liability where there are remaining funds after payment of all other creditors. These notes mature on 31 March 2015. Currently, the Building Society Special Administrators do not anticipate that there will be sufficient realisations in the estate to allow a distribution to the subordinated debt note holders. 


  • If you consider that you have a preferential claim, or if you intend to claim a lien, retention of title or any other form of security, you should advise the Building Society Special Administrators of your claim immediately, in writing, and forward any relevant supporting documents at the address below: 

The Building Society Special Administrators

Dunfermline Building Society (in building society special administration)

191 West George Street


G2 2LJ 


Ian Burns of Smith & Williamson was appointed as Independent Valuer ("the Valuer”) under The Dunfermline Building Society (DBS) Compensation Scheme, Resolution Fund and Third Party Compensation Order 2009. He was appointed to determine what compensation, if any, is payable to those parties whose interests may have been affected by The Dunfermline Building Society Property Transfer Instrument 2009.

The Valuer has completed his report, which can be found here: Dunfermline Building Society - Determinations and Report (PDF 773 KB)

Other than providing information to the Valuer when requested, neither DBS nor the Administrators had any involvement with the valuation process. 


Please call Alexander Walker on 0141 300 5845 or Susan Mcleish on 0141 300 5534 at KPMG if you need to contact us and continue to access this site for updates. 

The affairs, business and property of the building society are being managed by the Joint Building Society Special Administrators who contract as agents of the building society and without personal liability. Richard Heis and Michael Robert Pink are authorised to act as insolvency practitioners by the Institute of Chartered Accountants of England and Wales. Richard Dixon Fleming is authorised to act as an insolvency practitioner by the Insolvency Practitioners Association. Blair Carnegie Nimmo is authorised to act as an insolvency practitioner by the Institute of Chartered Accountants of Scotland. 

The building society is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority (Ref No 158765). Calls may be recorded and monitored for security and training purposes.

This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.

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